Cashbuild is a building materials retailer trading largely on a cash basis, as the name suggests. Where credit is offered — a materials account, or a credit facility arranged through a partner — it is provided by a registered credit provider on that provider’s terms, not by the retailer itself.
For anyone funding a build or a renovation, the more important question is not how to open a store account but how to fund the whole project, because materials are only one part of what a build costs.
Eligibility Requirements at a Glance
Where credit is available, the criteria are those of ordinary regulated credit.
- Be 18 years or older with a valid South African ID document or smart card
- Have a regular, verifiable income paid into a bank account in your own name
- Hold a bank account able to carry an authenticated debit order
- Not be under debt review, sequestration or administration
- For a business or trade account: CIPC registration documents, a business bank account and tax affairs in order with SARS
- Trade references, where required
Income and Affordability Requirements
A credit account is credit, and the affordability assessment applies.
The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
Budget the project, not the materials. Materials are typically a portion of a build’s total cost. Labour, transport, plans and professional fees, municipal approvals, and service connections make up the rest. Funding materials while assuming the rest will be found is the most common reason a self-funded build stalls half-finished — and an unfinished structure cannot be occupied, insured properly or easily sold.
Build in a contingency. Overruns on construction are normal rather than exceptional, and a project without a buffer stops the first time something is more expensive than quoted.
Credit and Financial Requirements
A credit bureau check forms part of any credit application and repayment behaviour is reported back.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
For a substantial build, retail credit is the wrong instrument. A bank building loan is secured on the property and released in stages against inspected progress, which makes it far cheaper than any retail account. A further advance against an existing bond is cheaper still where you have equity. Both are worth pricing before opening a store account.
If you are building rather than renovating, other requirements apply regardless of how it is funded. Plans must be approved by the local municipality. Where the Housing Consumers Protection Measures Act applies, the builder must be registered with the National Home Builders Registration Council (NHBRC) and the home enrolled. Verify registration with the NHBRC directly.
Documents and Verification Required
The pack depends on whether the account is personal or for a business.
- South African ID document or smart card
- Latest payslip, or the latest three where income varies
- Latest three months’ bank statements
- Proof of residence not older than three months
- For a business account: CIPC documents, a company profile, business bank statements and a SARS tax compliance status PIN
- Trade references, where required
How to Apply and Improve Approval Readiness
Ask in store what credit is currently offered and which registered provider stands behind it, then verify that provider before applying.
- Get the credit limit, payment terms and interest on carried balances in writing
- Price a bank building loan or a further advance against your bond before opening a retail account
- Budget the whole project and add a contingency
- Get municipal plan approval before buying materials
- Confirm your builder’s NHBRC registration directly with the NHBRC
- Keep every quote, invoice and delivery note
- Verify the credit provider’s NCR registration at ncr.org.za
Frequently Asked Questions
Does the retailer lend the money itself?
Credit offered through a retailer is normally provided by a registered credit provider. Ask which company stands behind it and verify its registration.
What is cheaper for a build — a store account or a bank loan?
A bank building loan or a further advance against an existing bond is almost always cheaper, because it is secured on the property.
Do I need approved plans?
For new construction and most structural alterations, yes, from your local municipality. Unapproved work causes problems with insurance and on sale.
How much contingency should I budget?
Enough that a normal overrun does not stop the project. Construction quotes routinely move, and an unfinished build is far more costly than a buffer.
Credit availability, account terms and building requirements change. Confirm current terms in store, price bank alternatives, and check building requirements with your municipality and the NHBRC.